Hyde acquires property management giant Pinnacle Group

Pinnacle manages homes on behalf of central and local government, institutional investors and house builders.

The London-headquartered firm also provides facilities management to social landlords, schools, hospitals and councils.

It also owns two for-profit registered providers: Pinnacle Affordable Homes and Pinnacle Spaces.

Together, the enlarged group now owns and manages around 120,000 homes across all tenures. It will also provides neighbourhood services to around 350,000 homes.

In an announcement on 31 October, Hyde said the acquisition is “a fundamental enabler” of the G15 landlord’s strategy to transform itself into “a leading national housing and property services management organisation”.

The two organisations said the enlarged group “builds on Hyde and Pinnacle’s combined expertise in attracting large-scale institutional capital to invest in the affordable housing sector”.

Hyde registered its own for-profit registered provider, Halesworth, in 2022. In September this year, it said it has three more for-profits in the pipeline.

Perry Lloyd, chief executive of Pinnacle Group, said: “We are excited to join forces with Hyde Group, a partnership that will amplify our impact across all living sectors, including affordable housing.

“By combining our strengths, we can innovate more effectively and deliver high-quality, well-managed homes and communities nationwide.

“This collaboration marks a significant step forward in our shared mission to ensure we meet the evolving needs of new and existing communities, customers and clients.”

Hyde reported a post-tax surplus of £25.9m in its last full financial year, down significantly from the previous year’s figure of £117.5m.

However the figures were skewed as the group was hit by £39.4m in impairment charges partly due to contractor failures, while in its 2022-23 financial year it was boosted by £57.2m of net gains from swap valuations.

Pinnacle reported a pre-tax profit of £27.6m in its latest publicly available results for 2022-23.

In August, Hyde announced that it was exploring a merger with Tower Hamlets Community Housing (THCH), an east London-based landlord found non-compliant by the Regulator of Social Housing last year.

THCH was downgraded from G1 to G3 and from V2 to V3 in March 2023, after the regulator found “weaknesses in THCH’s internal controls framework”.